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SIX Swiss Exchange rolls out AI-based surveillance platform

Today’s launch of “Prometheus”, the new trading surveillance application, sees SIX Exchange Regulation (SER) set new standards for the monitoring of SIX stock exchanges. SER consistently pursues a holistic surveillance approach and uses artificial intelligence, machine learning and big data as a basis for this.

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“Prometheus” is based on cutting-edge technologies and the highest degree of automation and will gradually replace the trade monitoring software currently in use. The operational launch of the Insider Trading module sees SER’s trading surveillance division open up a new chapter in the uncovering of insider trading in Switzerland.

Since the entry into force of the Financial Market Infrastructure Act (FinfraG) reporting regime, the trading surveillance unit now has at its disposal more information regarding the beneficial owner of a transaction. Thus, the trade data can be linked to the transaction data.

The “Prometheus” application enables the analysts from SER’s trading surveillance division to perform analyses more quickly, more granular and on a wider data basis to uncover potential cases of insider trading.

The Insider Trading module is the first of two modules that will come together to form “Prometheus”. The second module, Market Manipulation, is currently under development and due to be released in the first half of 2021.

Continuous improvement as a driving force for development “The trading surveillance division’s aim is to improve all relevant processes on an ongoing basis. Gaining in efficiency and effectiveness while boosting quality are the most important driving factors in this. “Prometheus” sees us make the move towards becoming a leading global trading surveillance unit: using the latest technological approaches, it ensures that we don’t react to change, but rather that we trigger change ourselves. We do this on a continual basis to maintain the integrity and transparency of the Swiss financial centre at its usual high level,” explains Christian Müller, Head of Surveillance & Enforcement. “The application will allow us to analyse more data more quickly, and in more depth,” continues Christian Müller.

Prometheus’s swift and targeted development The project launch in the fourth quarter of 2019 and today’s productive go-live of the Insider Trading module has seen SER achieve another milestone in its transformation into a more effective, risk-based and more efficient trading surveillance outfit. With PwC Switzerland, SER was able to draw on an experienced team of experts in the development of "Prometheus”. “Time to market was important from the outset. Not only did we want to develop an innovative and efficient application, we wanted to do it as soon as possible. A key success factor for the short implementation time was the symbiosis between our internal specialists and the experts from PwC Switzerland,” says Christian Müller, explaining the background of their rapid success. After successful tests prior to implementation, the first empirical values are now to be collected. At the same time, SER continues to work all out to complete the second module, Market Manipulation.

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